Author Question: Page Litton likes to use her credit card to buy gas since she can defer payment for 30 days. ... (Read 93 times)

fagboi · **on:** Jul 11, 2018

Page Litton likes to use her credit card to buy gas since she can defer payment for 30 days. However, she notices that her dealer charges 3 cents more per gallon than if she paid with cash. Page estimates paying about 1.

00 a gallon for gas, and her monthly credit statement shows an APR of 18 . Given this information, Page should
A)

continue using her card since the opportunity cost of paying in cash is less than 18 a year.
B)

pay with cash since its opportunity cost is about 36 a year.
C)

continue using her card, the effective cost of using cash is about 36 a year.
D)

you can't tell unless you know how much gas she will buy.

Question 2

In the context of a surety agreement, the party who agrees to perform certain acts or fulfill certain obligations is called the

A) fidelity.
B) obligee.
C) surety.
D) principal.